ONON Stock Plunges To 2-Year Lows In Record Single-Day Crash After Guidance Cut, Revenue Miss

• On Holding's second-quarter revenue of $1.05 billion fell short of Wall Street's $1.08 billion estimate, while EPS of $0.43 roughly matched expectations.
• The company lowered its full-year 2026 net sales growth outlook to the low-20% range from "at least 23%."
• The Americas saw constant-currency growth of 13%, compared with 20.5% in EMEA and 54.7% in APAC.

Shares of On Holding (ONON) dropped in midday trade on Tuesday, dipping to lows last seen in May 2024, after the company reported second-quarter revenue that missed Wall Street expectations and trimmed full-year guidance.

ONON stock plummeted more than 19% in midday trade and was among the top trending tickers on Stocktwits at the time of writing. The fall marked the stock's steepest single-day decline since its 2021 public market debut and dragged it to lows last seen in May 2024. 

On Holding's reported second-quarter (Q2) earnings per share (EPS) of $0.43, essentially in line with the $0.42 consensus estimate, as per Koyfin. Revenue came in at $1.05 billion, falling short of the $1.08 billion analysts had expected. 

Meanwhile, management trimmed full-year 2026 net sales growth guidance to the low-20% range, down from a prior forecast of "at least 23%."

On Holding Sees Pressure In US Wholesale Market

Regional sales in the Americas for ON Holding increased 13% at constant currency, compared with 20.5% growth in EMEA and a 54.7% increase in APAC. Management said sell-through for everyday running products was weaker in a highly promotional U.S. market. 

The company also stated that it deliberately limited wholesale sell-in in the Americas, contributing to a slowdown in wholesale growth to 12.7% at constant currency. It expects third-quarter growth to trail the fourth quarter while it works through corrective actions in its wholesale business.

On Holding Co-CEO Bets On The ‘Movement Class’

Despite the weaker sales outlook, Founder and Co-CEO David Allemann said On Holding was gaining traction with what the company calls the "movement class," a consumer group that views fitness as part of its identity.

"This intersection of performance engineering and cultural relevance is winning what we call the movement class," Allemann said.

CFO Frank Sluis pointed to the company's efforts to balance growth with profitability while expanding the brand. "We are broadening and elevating the brand at the same time," he said.

Sluis added that an accelerated product rollout was in the works. "This is the fastest accelerated rollout of product that we ever have," he said, referring to updates planned across the company's everyday running franchises over the next 14 months.

How Is Retail Feeling About ONON Stock?

On Stocktwits, retail sentiment around ONON shares improved to ‘extremely bullish’ from ‘bullish’ territory over the past day, while chatter jumped to ‘extremely high’ from ‘normal’ levels.

One user stated that footwear is a “tough business” right now and said On Holding's results could have broader implications for the sector.

Another retail investor said that the Q2 results were “good” and that the stock price reaction might be “overdone.”

ONON stock has fallen over 33% this year and nearly 11% since its 2021 initial public offering (IPO).

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